The Australian Dollar Euro exchange rate has been trending tightly today, owing to both currencies being in low demand ahead of key US news.
Australian Dollar Euro Exchange Rate News: AUD Softened by Iron Ore Oversupply
The Australian Dollar Euro exchange rate has been close today, with both currencies finding themselves in low demand overall.
The latest Australian economic news has concerned iron ore production; a nearly-record level of exports have been recorded from Port Hedland annually, which has raised concerns about a market flood lowering the cost of iron ore overall.
Better AU news has been that the NAB business confidence score for November rose on Tuesday morning, when it had previously been forecast to fall.
EUR AUD interest has been low on account of the continued struggles of Italy’s banking sector, as well as a dip in the employment change during Q3.
Eurozone positivity has also not been lacking, with the ZEW economic sentiment index for December rising above forecasts on Tuesday night.
Decline Forecast in AUD EUR Exchange Rate on Westpac Confidence Score
The Australian Dollar Euro exchange rate could drop in the near-term, given that the next major AU data has been forecast pessimistically.
This will consist of the Westpac consumer confidence index for December, which is expected to drop from 101.3 to 101.
Elsewhere, the AUD EUR exchange rate could be further disadvantaged by the impending Fed interest rate decision in the US. Should the Fed raise the rate on Thursday morning, as they are widely expected to do, then the Australian Dollar is likely to tumble due to less favourable conditions developing for AU exporters.
Euro Australian Dollar Exchange Rate Forecast: Late Night Euro Gains Possible on Incoming Industrial Data
The Euro has the potential to advance against the Australian Dollar in the near-term, given that the incoming October industrial production results have been forecasts positively overall.
Due tonight, the results are expected to show a slight dip from 1.2% to 1.1% on the year, but a far more positive rise from -0.8% to 0.5% on the month.
Recent Interbank Exchange Rates
At the time of writing, the Australian Dollar Euro (AUD EUR) exchange rate was trending in the region of 0.70 and the Euro Australian Dollar (EUR AUD) exchange rate was trending in the region of 1.41.